To: Audit manager

From: Cavone Brown

Subject: Browns Group Audit Planning

Date: $1$ July $2015$

Hello

I need you to begin planning the audit of the Browns Group $($the Group$)$ for the year ended $31$ May $215.$ It would have been brought to your attention that we have been appointed to audit the Group financial statements, and we have also been appointed to audit the financial statements of the parent company and all subsidiaries of the Group except for a foreign subsidiary, Pennington Co$,$ which is audited by a local firm, Davis & Co$.$ All components of the Group have the same year end of $31$ May, report under IFRS $$ Standards and in the same currency.

Using the information, you have been provided with, you are required to prepare briefing notes for my use, in which you are expected to:

$($a$)$ Evaluate the audit risks to be considered in planning the audit of the Group. Your evaluation should incorporate analytical procedures aimed at identifying relevant audit risks. $(20$ marks$)$